Warrants (Tables)

9 Months Ended

Sep. 30, 2016

Outstanding Warrants to Purchase Common Stock

The following table summarizes outstanding liability-classified warrants to purchase common stock as of:



	Number of Warrants
Liability-classified warrants	September 30, 2016	December 31, 2015	Exercise Price		Expiration Dates
Issued in March 2010 financing	—	319,789	$	6.25	Mar 2016
Issued in June 2011 financing	—	6,113	$	22.50	Jun 2016
Issued in August 2011 financing	—	565,759	$	18.75	Aug 2016
Issued to placement agents in August 2011 financing	—	50,123	$	13.635	Aug 2016
Issued in Series B and D Preferred Stock offerings	1,389,194	1,970,594	$	6.25	Jul 2016 - Dec 2016
Issued in Series E Preferred Stock offering ⁽¹⁾	132,014	60,000	$	1.13625	Dec 2017
Issued with June 2012 Convertible Notes	1,125,578	1,125,578	$	2.50	Jun 2018
Issued in Series E Preferred Stock offering	1,568,823	1,568,823	$	7.50	Dec 2018
Issued with September 2016 Convertible Notes	18,087,500	—	$	1.50	Sep 2021
Total	22,303,109	5,666,779

(1)

As a result of the issuance of the September 2016 Convertible Notes, the exercise price for warrants issued in connection with the Company’s Series E Preferred Stock offering was decreased from $2.50 per warrant share to $1.13625 and the number of warrant shares was increased by 72,014, due to anti-dilution provisions contained in the warrants for certain investors who did not agree to modifications the Company offered in October 2012.

Schedule of Warrants Outstanding Roll Forward

The table below is a summary of the Company’s warrant activity during the nine months ended September 30, 2016:



	Number of warrants		Weighted- average exercise price
Outstanding at December 31, 2015	5,666,779		$	7.14
Issued	18,087,500		1.50
Adjustments ⁽¹⁾	72,014		1.13625
Exercised	—		—
Expired	(1,523,184	)	11.20
Outstanding at September 30, 2016	22,303,109		$	2.27


(1)	See footnote 1 in table above.

Summary of Other Assumptions Used by Entity

The following table summarizes the calculated aggregate fair values, along with the inputs and assumptions utilized in each calculation:



($ in thousands except per share data)	September 30, 2016			December 31, 2015
Calculated aggregate value	$	7,400		$	8,275
Weighted average exercise price per share	$	2.27		$	7.14
Closing price per share of common stock	$	0.72		$	4.55
Volatility	85.3		%	85.2		%
Weighted average remaining expected life	4 years, 3 months			1 year, 8 months
Risk-free interest rate	1.04		%	0.98		%
Dividend yield	—			—

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details